In an interview with CNBC-TV18 Hemant Thukral of Aditya Birla Money shared his outlook on the F&O segment and how one should play it now.

Below is the edited transcript of Hemant Thukral’s interview with CNBC-TV18

Q: Technically how are JP Associates and Ultratech placed, would you give a trading strategy for either of them?

A: For JP Associates we have seen huge long position being built up because a lot of people were expecting this news to take place but what is important is the way Call writers have added up on 45 Call. For me, JP Associates beyond Rs 45-46 zone will be a tough call.

If I have been holding long positions, I would book profit around Rs 45-46 and look out for an opportunity to buy back around Rs 38-39. I would not hold long positions beyond Rs 45.

Q: What about you, you are long on the Nifty today, how much would you move your stop loss higher now and what is the next target that you are watching for on the index itself?

A: I still see that the market is indicating bullish signals. The way Put writers are building confidence is a very clear signal of euphoria. Last month Call writers kept building positions. Now it is the chance of Put writers. Yesterday, we have even seen 5,900 Put writers building positions. For positional traders, stop loss should be kept as 5,850 for the long positions in Nifty.

They should continue to build on. I have a feeling that we may retest even 6,050 on the upside. Though 6,000 Call has the highest open interest (OI), but even if one looks at the way OI in Puts has added up, 44 lakh doesn’t seems to be a big OI in 6,000 Call at all. Call writers are still circumspect whether to add at 6,000 or not. I have a feeling that we may even surpass that psychological figure of 6,000 and my target for Nifty would be 6,050. Around those levels, I would definitely like to book some profit. For now, I would continue to hold to long positions.